LT
LT 11/1/21 MondayThe price action of the stock clearly states The Trend is Bullish from past few sessions. It’s quite interesting to analyse the chart at such levels. There’s Strong probability to achieve Target 1 in the upcoming session . In spite of heavy volumes coming in, the price action has not given any specific momentum in today’s trading session, other than the opening gap up. There’s definitely accumulation going on which will result in heavy bull rally in coming sessions. Till then Target 1 and 2 are reasonable prices one can trade for . On intraday TF ,price has tested support on 16 EMA ,which is close to the support zone . Before initiating the trade check for the trend and whichever signals you rely on . TRADE WISELY AND SMARTLY
LT | Mahurat Trading investment |100% Profit | In DETAIL 👍🎯L&T Shares Fundamental Analysis
The company’s shares have 52 weeks high of INR 1607 and have a market capitalisation of INR 1.09 trillion which makes it a Large-Cap company.
1.Economic Moat
The company has a history of over 80 years of engineering excellence and operates in 9 business verticals. L&T Group comprises of 93+ subsidiaries, 8+ associates, 34+ joint-venture and 33+ joint operations companies.
2. Business Model and Management
The main business verticals include Building and factories, transportation and infrastructure, Civil Engineering, Power, Defence, Electrical and Automation. The subsidiaries are involved in some non-core businesses like IT
services, Realty, Machinery, Financial services etc. & order inflow of INR 1286 billion in the first three quarters of FY 2020
3. Growth Ratios
The revenue has seen a growth of 12.3% CAGR over the last 10 years. The operating income and net income has also increased by 6.5% CAGR and 5.3% CAGR respectively.
4. Profitability Ratios
The gross margin has remained flat over the years which indicates that the company is able to pass down the inflation-related costs to its customers.
5. Cash Flow Ratios
the company has a moderate cash position.
6.Liquidity and Solvency Ratios
the financial leverage has been increasing but the debt to equity ratio has flattened. This indicates that the company’s assets are valued at higher levels which is the general case with the industry as new projects are
undertaken and progress is made. The current ratio has remained flat and the quick ratio has also been stable over the years. This indicates good liquidity and solvency position for the company.
7. Efficiency Ratios
good management of cash by the company even with an increased scale of operations.
8. Valuation Ratios
L&T, however, still has solid fundamentals and an order book which is almost 3 times its annual revenue. Hence the company can be said to be trading at attractive multiples for long term investing.
9. ROE 5 way Du Pont Analysis
The asset turnover has remained stable and the tax efficiency has improved. Overall the company has shown an increased return on equity along with a flat debt to equity ratio.
10.Future Prospects
The company witnessed a strong international order inflow of INR 416 billion (+2%YoY). The domestic orders declined by 20% YoY, whereas international business grew by 64% YoY to INR 179 billion. International orders
contributed 43% of total order inflow for the 3rd quarter of 2020 just before the COVID-19 pandemic.
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COMMENT Below your view !
#LT may give a very nice move#LT nearly 2.5% up (23 points) from the Buy signal on 4-Nov
There was a Sell signal today which was not activated, which meant that the Buying may continue here. Btw, gave this call to the members today to buy above 960.8
Still looks solid to you? There may be some more buying we may see here..
another 2% upmove possible
#Oct12 - LT (intraday+swing)The stock has been continuously testing the resistance at 915. Last day too the resistance was respected, but since the stock is highly bullish, there is chance for the breakout to happen. The bullishness will be confirmed if the resistance is broken. This is an intraday as well as swing pick from my side.
Buy above 915
Note:
Avoid the stock if a big gap up or gap down is seen
Enter after the breakout happens and not before it
Do not chase the market, i.e., do not get involved in late entries
Only enter with strict stop-loss and target
This is not a recommendation and is for educational purposes only.
always follow risk-reward and quantity management for the 100% of the times
The above mentioned idea may not work, so beware of the risk you are taking